The Aggregate Supply Curve Is Upward Sloping Because

question 6

Multiple Choice

The aggregate supply curve is upward sloping because

• A)higher product prices lag behind increases in resource costs.
• B)higher prices eliminate much of the purchasing power of higher profits and wages.
• C)higher prices result in greater nominal dollar purchases by consumers.
• D)production costs tend to rise as an economy produces greater output,and higher prices are necessary to cover the costs.
• E)lower prices stimulate suppliers to increase their sales volumes in order to maintain stable revenue levels.

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Definitions:

CESA Contribution

Funds put into a Coverdell Education Savings Account (CESA) to finance a beneficiary's educational expenses.

AGI

Adjusted Gross Income is the gross income of an individual or entity minus specific deductions, used to calculate taxable income on U.S. federal income taxes.

SIMPLE Plan

A retirement savings plan available for small businesses and self-employed individuals, offering a simplified way to save for retirement.

Salary

A fixed regular payment, typically monthly or biweekly, made by an employer to an employee, especially a professional or white-collar worker.